Salford's credit crunch

MORE than 1,700 Salford business are at risk from the credit crunch according to a confidential report seen by the Advertiser. Corporate rescue and recovery giants Begbies Traynor - which is the largest business of its kind in the UK - looked at a range of economic indicators as the country faces the prospect of ressession. They have listed 1,700 businesses which face significant risk and further 36 businesses deemed critical.

MORE than 1,700 Salford business are at risk from the credit crunch according to a confidential report seen by the Advertiser.

Corporate rescue and recovery giants Begbies Traynor - which is the largest business of its kind in the UK - looked at a range of economic indicators as the country faces the prospect of ressession.

They have listed 1,700 businesses which face significant risk and further 36 businesses deemed critical.

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Mark Halstead, of Begbies Traynor, said: "The businesses deemed significant are all heavily underperforming businesses which may face some sort of financial restructuring over the next three years and could subsequently enter into a critical state.

"The list of critical businesses are those companies that have a series of county court judgements, high court writs or petitions brought against them and could face collapse.

"As a general rule it is likely that 15 per cent of those businesses deemed critical will collapse in the next 12 months."

According to the report, which looks at businesses across the UK, those in the north west have been the worst hit by the current financial crisis, with ‘critical problems’ increasing by 851 per cent compared to last year.

The report also highlights the construction industry. It states: "The situation for construction is likely to worsen as May saw the lowest level of mortgage approvals for some years and housebuilders announced significant job cuts in June."

Alec McFadden, development manager of Salford Unemployed Community Resource Centre, said: "Salford is a branch economy whereby businesses aren’t necessarily based here but have branches or parts of their business here.

"In the face of a crisis these are the first to go. We’re going to have at 18 months to two years of high unemployment in Salford and things will certainly get worse."

The resource centre has already seen an increased use of its services forcing them to extend opening hours.

Alec said: "We’re getting people in here who have been working for nearly 20 years and have suddenly been made redundant.